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FEC approves award of 16 power contracts

FEC approves award of 16 power contracts

The Federal Government on Thursday awarded 16 power supply contracts in a bid to tackle epileptic electricity supply.

The total cost of the 16 contracts include N28.620.993, 956.83, $286,814,232.24, and €9,878, 40720.

The contracts were approved by the extraordinary Federal Executive Council (FEC) meeting presided over by Vice President Yemi Osinbajo at council chambers of the State House, yesterday.

The Vice President stood in for President Muhammadu Buhari who was in Maiduguri on an official visit to Borno state.

The contracts, according to the minister of power, Abubakar Aliyu, include the construction of a 2X60MVA 132/33 KVA substation at Ikare-Akoko and 2×132 KV Lines Bay Extension at Oke-Agbe, Ondo State at the cost of $9,9928,912.80 and N2,037,076,700.00.

Supply of 65 Hilux vehicle and 20 SUVs nationwide at the cost of N2,741,787,500.00.

Procurement of 1,500 drums of transformer 001 nationwide at N322,500,000.00.

Supply of 19 Sergi transformer explosion and fire protection devices nationwide at €5,326,663,70 and N347,629,092.57..

Others include the construction of 142KV double circuit line in Ikere-Ijesa-Isu-Ilupeju towns, Ado-Ekiti State, $30,880,393.82 and N8,344,898,490.86, as well as a new National Control Centre at Osogbo, Osun State at the cost of N1,168,318,638.68.

The council also approved contract for the construction of a new National Control Centre at Gwagwalada, FCT at N1,161,915,489.76

Supply of 180 of grounding equipment nationwide at €686,043.50 and N41,378,244.25, and additional work on 330KV double line to Mando substation in Kaduna at N893,011,356.42.

The contracts approved also include that of a new substation of 2X60MVA, 132/33KV substation at Ogbomosho and 2X 132KV line bags extension at Ganmo substation at Ilorin at €5,274,245.00 and N457,708,341.02.

The minister also announced approval for the design, manufacture, supply at N4,325,652,643.50, installation and commissioning of transmission lines of 330/132/33 KV Lekki, Lagos. Lot 1 and Lot 2, at N2,812,767,499.00.

Others include the augmentation for the construction of 2X60MVA 132/33 KVA substation at Malumfashi and 4X132KV Line Bats at Kankara at Katsina at N176,517,897.88, as well as Supply and delivering of 40 each of primary and secondary injection test sets nationwide at €3,865,700.00 and N212,386,640.00

Read also: Reps want electricity tariff hike suspended as hard times bite Nigerians

Briefing State House correspondents at the end of the meeting, minister of information and culture, Lai Mohammed, said the meeting was to ensure the council begins in a clean slate in 2022.

The power minister, however, blamed the previous administration’s poor investment in the sector for the current epileptic power supply in the country.

According to him, the present administration has done more than any other to ensure that Nigerians enjoy improved supply of electricity.

He avers that contrary to the claims that nothing was being done to tackle epileptic power supply, the government was doing a lot to remedy the situation with more investments in the sector which he said had manifested in the less system collapsed being witnessed in the country.

He disclosed that the federal government has placed an order for power equipment; the minister assured that Nigerians will soon see the outcome of the ongoing investments.

Aliyu maintained that the present power generation in the country is about 5,000mw as he decried what he termed the weak transmission grid.

Speaking on the memo he presented, Aliyu stated: “Today, I presented to council 16 memos, which I seek for council’s approval and the council graciously approved all of them. At this point, let me say what these approvals will do to the nation’s electricity supply.

“As we’re all aware, the major problem we’re having in the electricity supply industry is to be able to evacuate sufficient electricity and distribute them. That is to say, we have a very weak transmission grid and distribution segment of the value chain.

“We may not be having problems with generation. So, unless we’re able to strengthen the electricity grid, which is nationwide, and to expand, and to be able to evacuate, what the grid can take to consumers, we will have a lot of problems ahead of us.

“So, what we’re doing currently through various and several interventions is to be able to repair the grid by constructing new transmission lines, bringing in new equipment to replace the old ones at our substations. So, that will release more capacity to the distribution, leading to the customers.

“So, the operational capacity, as you all know now is hovering around 5,000 megawatts and the transmission and distribution.

“So, these projects that we brought to council today and got approvals are all geared towards strengthening the willing capacity of the transmission and towards distribution, even though as you all know, the distribution segment of the NESI (Nigerian Electricity Supply Industry) is been privatised, but we cannot fold our arms and allow them to continue not to do much in order to evacuate what the transmission can bring.

“But as it is now, even the transmission is not that strong. So, we need to put more investment into the transmission so that we can improve the willing capacity of the TCN to be able to take up enough electricity from the generation.

“So, these memos, although 16 of them but they’re all geared towards achieving what I’ve just explained. So I’m going to read them out for you for purpose of records and information.